The Insolvency Service has released the latest figures for UK company insolvencies for July 2024.
The number of registered company insolvencies in England and Wales in July 2024 was 2,191, 7% lower than in June 2024 (2,363) but 16% higher than the same month in the previous year (1,890 in July 2023). While showing a decrease, the number of company insolvencies remained significantly higher than those seen during the COVID-19 pandemic, underscoring the ongoing impact of the crisis.
Of the 2,191 registered company insolvencies in July 2024, there were:
Figure 1: Company insolvency numbers in July 2024 were lower than in June 2024 but higher than in July 2023.
Sources: Insolvency Service (compulsory liquidations only); Companies House (all other insolvency procedures).
CVLs
In July 2024, CVLs accounted for 77% of all company insolvencies. Although the number of CVLs decreased by 9% from June 2024, it was 15% higher than during the same month last year (July 2023) after seasonal adjustment.
2023 saw the highest annual number of CVLs since the start of the time series in 1960, continuing the year-on-year increases seen since 2021. CVLs had been increasing at approximately 10% per year between 2017 and 2019 before decreasing to the lowest levels seen since 2007 during the COVID-19 pandemic.
Compulsory liquidations
In July 2024, the number of seasonally adjusted compulsory liquidations hit a high not seen since August 2018. The figure was 5% higher than in June 2024 and 27% higher than in July 2023.
The number of compulsory liquidations in 2023 increased by 44% compared to 2022 but was still 4% lower than the pre-pandemic levels of 2019. These numbers have risen from the historically low levels observed in 2020 and 2021. This increase is partly due to easing restrictions on statutory demands and certain winding-up petitions, which have led to more compulsory liquidations.
Administrations
After seasonal adjustment, the number of administrations in July 2024 was 10% lower than in June 2024 but 6% higher than in July 2023. The number of administrations increased during 2022 and 2023 from an 18-year annual low during the COVID-19 pandemic in 2021.
CVAs
In July 2024, the number of CVAs increased by 32% compared to July 2023 and 9% compared to June 2024. Despite this growth, the numbers remain lower than historical levels. It's worth noting that CVAs are not seasonally adjusted due to low volumes. The number of CVAs in 2023 was 68% higher than in 2022, which saw the lowest annual total in the time series since 1993.
The five industries that experienced the highest number of insolvencies in the 12 months to June 2024 were:
Company insolvency by industry, England and Wales, July 2023 to June 2024 compared with July 2022 to June 2023.
CoCredo MD Dan Hancocks says: “Despite positive initial economic signs, it's clear from the chart above that specific sectors are still grappling with significant challenges due to persistently high interest rates.”
“In the current cost-of-living crisis, consumer spending has significantly declined, which poses challenges for businesses, particularly in the retail and hospitality sectors. To overcome these difficulties, businesses must adapt and innovate to weather the storm. A stronger economic recovery will also be instrumental in preventing further company insolvencies.”
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